The price of bitcoin has received another massive bearish prediction of $3,000, in a newsletter by Anthony Pompliano, aka Pomp, a Founder & Partner – Morgan Creek Digital Assets. The forecast made on August 24, 2018, is based on the parabolic move and the bearish history of the cryptocurrency.
Bitcoin Bearish Trend To Reach $3,000
The continuous drop in the value of bitcoin from its all-time highest valuation of $20,000 to between $5,000 and $6,000 since the beginning of 2018 has placed the cryptocurrency industry in a lot of distress. This features a statistics of over $600 billion shed in the market cap of cryptocurrencies in general.
Pomp stated that Bitcoin would drop further to $3,000 before it starts another bullish trend which he says would last till the year 2023. He says,
“Then imagine that bitcoin taking another 50% drop in value from the present range of $6,000. This simply shows the possibility of great days of distress ahead for the cryptocurrency world. Such is the image of the imagination that ravages my mind at the predictions of the bearish trend.”
In contrast, the rate of optimism that still patronizes some cryptocurrency enthusiasts despite the Bitcoin ETF rejection during the past week is incurable. As the Fundstrat Co-founder and Analyst, Tom Lee still opined that it would reach $25,000 this year.
Why the Bearish Trend, as Anthony Envisages the Drop of Bitcoin to $3,000?
His study of the past parabolic increase and decrease of the cryptocurrency guided his current opinion of the bearish trend.
On the parabolic increase, it was noted that the first rapid move between 2010 and 2011 took 300 days, followed by another of 900 days between 2011 and 2013, and lastly the peak of $20,000 between 2013 and 2017 that took 1500 days. To go by this trend, it shows the next parabolic rise would reach its zenith by July or August of 2023.
On the bearish trend history, the first Bitcoin bear trend took 160 days in 2011, followed by another between 2013 and 2014 that took 400 days. The study shows that the present bear if it follows the previous, will take 650 days which is yet to reach 300 days. A sign of more gloomy days ahead for the cryptocurrency industry as the recovery period everyone anticipates may not happen till the third quarter of 2019.
As it was further revealed in the article, Bitcoin halving always impacts the bullish trend of Bitcoin, and the next halving might not take place until mid-2020. Another sign of gloomy days ahead for bitcoin and cryptocurrency market.
Reasoning this prediction, it seems realistic. However, Pomp also claimed he proposed the Bitcoin price to reach $50,000 at the beginning of 2018, but the series of events has shown that his prediction could only be achieved in 4 years and four months time.
He got the timeline wrong, though it is still achievable. Same might also apply to his current prediction of $3,000 bottom. Regardless, the time would justify this.